Everyday people are signing on car insurance policies. There is typically a substantial amount of paperwork involved and many items to read. One of the most important aspects about an automobile policy is the named driver. Essentially, a named driver is the main driver, along with any other drivers that are specifically named on the auto insurance policy. Many people run into this situation when they have more than one person in their household that can drive.
Having more than one named driver on a policy has its good points as well as has some drawbacks. It is obvious that the good points would include complete coverage, flexibility in drivers, etc. This is especially nice for those parents who have multiple driving age children. This allows them to use the same car while all being covered.
The biggest drawback that multiple named drivers on a policy have is the extra cost. After the first driver, the premium goes up. This is due to the fact that the more drivers you have; the more chance there will be to have an accident. This is especially true for many new drivers on one policy. The fact that they are new drivers alone increases the risk for the insurance company. Throw in age factor and you could have a heavy car insurance premium.
If there is a point in time where someone will be driving your car for a lengthened period of time, you may want to consider adding them on as a temporary named driver. It is known that some insurance policies do not have this feature, so make sure yours does before you decide to sign on the line. This usually comes in great handy for family trips, someone?s car breaking down and seasonal visitors.
Keep in mind, only named drivers on a policy will be covered under the insurance policy. If you allow someone to drive your car, for whatever reason, you are responsible for them if they were to get into an accident or harm your car in any way. In this, it is best to not allow anyone that is not on the policy drive your vehicle.
To eliminate this from happing due to the cost factor, many people decide to put their younger driver on their policy instead of getting their own. This helps eliminate cost because the main driver is the experienced parent. Insurance companies, however, are catching on quickly and banning this practice in some areas.
Alternatively, you could have the parents be listed as named drivers on the newer driver?s policy. Although it is not as commonly used, it is still legal and being practiced.
The last piece of advice is to shop around. Do not settle for an insurance policy that does not deliver what you want. Instead, look around for one that fits your needs; there are many to choose from.
Graham McKenzie is the content syndication coordinator for Carinsurancesa.co.za. South Arica?s leading car and vechile portal.
Tags: auto insurance, automotive, car insurance, cars, finance, insurance